Isabella Bank (OTCMKTS:ISBA) versus Investar (NASDAQ:ISTR) Head to Head Comparison
by Sarita Garza · The Markets DailyInvestar (NASDAQ:ISTR – Get Free Report) and Isabella Bank (OTCMKTS:ISBA – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Investar and Isabella Bank, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Investar | 0 | 0 | 2 | 0 | 3.00 |
| Isabella Bank | 0 | 1 | 0 | 0 | 2.00 |
Investar presently has a consensus target price of $16.75, indicating a potential downside of 10.52%. Isabella Bank has a consensus target price of $22.00, indicating a potential upside of 0.00%. Given Isabella Bank’s higher possible upside, analysts plainly believe Isabella Bank is more favorable than Investar.
Risk and Volatility
Investar has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Isabella Bank has a beta of -0.05, suggesting that its stock price is 105% less volatile than the S&P 500.
Profitability
This table compares Investar and Isabella Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Investar | 10.04% | 6.69% | 0.53% |
| Isabella Bank | 14.98% | 7.50% | 0.72% |
Dividends
Investar pays an annual dividend of $0.42 per share and has a dividend yield of 2.2%. Isabella Bank pays an annual dividend of $1.12 per share and has a dividend yield of 5.1%. Investar pays out 23.5% of its earnings in the form of a dividend. Isabella Bank pays out 52.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Valuation and Earnings
This table compares Investar and Isabella Bank”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Investar | $79.24 million | 2.32 | $16.68 million | $1.79 | 10.46 |
| Isabella Bank | $93.46 million | 1.76 | $18.17 million | $2.12 | 10.38 |
Isabella Bank has higher revenue and earnings than Investar. Isabella Bank is trading at a lower price-to-earnings ratio than Investar, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
50.2% of Investar shares are owned by institutional investors. 8.7% of Investar shares are owned by insiders. Comparatively, 9.7% of Isabella Bank shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Isabella Bank beats Investar on 9 of the 16 factors compared between the two stocks.
About Investar
Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals, professionals, and small to medium-sized businesses in south Louisiana, southeast Texas, and Alabama in the United States. The company offers various deposit products and services, such as savings, checking, money market, and individual retirement accounts, as well as various certificates of deposit; debit and credit cards; internet, mobile, and video banking services; and reciprocal deposit products. It also provides commercial real estate loans; commercial and industrial loans, including working capital lines of credit and equipment loans; loans for the construction of commercial projects, and single family residential and multifamily properties; one-to-four family residential real estate loans, such as second mortgage loans; and consumer loans, such as secured and unsecured installment and term loans, home equity loans and lines of credit, and auto loans, as well as loans for personal, family, and household purposes. In addition, the company offers treasury management products, including remote deposit capture, lockbox payment processing, virtual vault, positive pay, ACH origination, wire transfer, investment sweep accounts, and business internet banking services. Further, it provides various other banking services, such as cashiers' checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, automated teller machines, electronic statements, interactive teller machines, online account opening, and mobile wallet payment services. Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.
About Isabella Bank
Isabella Bank Corporation operates as the bank holding company for Isabella Bank that provides various banking products and services to businesses, institutions, and individuals and their families. Its deposit products include checking accounts, savings accounts, certificates of deposit, direct deposits, and money market accounts. The company's loan portfolio comprises commercial, agricultural, and residential real estate loans, as well as consumer loans, including secured and unsecured personal loans. It also offers cash management, mobile and internet banking, electronic bill pay, automated teller machines, trust and investment, estate planning, and safe deposit box rental services; and insurance products. The company operated banking offices in Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw counties. Isabella Bank Corporation was founded in 1903 and is headquartered in Mount Pleasant, Michigan.